Gildan Activewear (NYSE:GIL) Posts Quarterly Earnings Results, Beats Estimates By $0.07 EPS

Gildan Activewear (NYSE:GIL) (TSE:GIL) announced its quarterly earnings data on Thursday. The textile maker reported $0.43 earnings per share for the quarter, beating the consensus estimate of $0.36 by $0.07, Zacks reports. Gildan Activewear had a net margin of 6.10% and a return on equity of 24.48%. The firm had revenue of $1.17 billion for the quarter, compared to analyst estimates of $1.14 billion. During the same quarter in the prior year, the business earned $0.59 earnings per share. The business’s quarterly revenue was up 63.8% compared to the same quarter last year. Gildan Activewear updated its FY 2026 guidance to 4.200-4.400 EPS.

Here are the key takeaways from Gildan Activewear’s conference call:

• We reported record Q1 net sales from continuing operations of $1.17 billion (up ~64% YoY), driven primarily by the HanesBrands acquisition.
• Adjusted diluted EPS from continuing operations fell to $0.43 (from $0.59 a year ago) and GAAP diluted loss per share was $0.30, reflecting integration costs, an acquisition inventory fair-value step-up and higher financing and SG&A pressures.
• Management is progressing on integration and expects approximately $250 million of run-rate cost synergies over three years, including about $100 million in 2026, as it relocates Hanes volumes into Gildan facilities and standardizes systems.
• The company is maintaining 2026 guidance — $6.0–$6.2 billion revenue, ~20% adjusted operating margin and adjusted EPS of $4.20–$4.40 — while noting Q2 (~$1.6 billion) is impacted by a proactive temporary inventory reduction and shipment timing shifts into H2.
• Net debt ended Q1 at $4.868 billion with leverage of 3.3x; management is pursuing a sale of Hanes Australasia to pay down debt and said buybacks will resume only after reaching a ~2x leverage target within the 1.5–2.5x framework.

Gildan Activewear Stock Down 0.8%

Shares of GIL traded down $0.52 on Friday, reaching $61.47. The company’s stock had a trading volume of 1,574,837 shares, compared to its average volume of 1,078,575. The company has a current ratio of 2.11, a quick ratio of 1.05 and a debt-to-equity ratio of 1.16. Gildan Activewear has a twelve month low of $46.00 and a twelve month high of $73.69. The stock has a market capitalization of $11.38 billion, a PE ratio of 23.46 and a beta of 1.10. The firm has a fifty day moving average of $60.14 and a 200-day moving average of $61.51.

Gildan Activewear Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Monday, June 15th. Investors of record on Wednesday, May 20th will be issued a $0.249 dividend. This represents a $1.00 dividend on an annualized basis and a dividend yield of 1.6%. The ex-dividend date is Wednesday, May 20th. Gildan Activewear’s dividend payout ratio is currently 38.17%.

Institutional Investors Weigh In On Gildan Activewear

Institutional investors and hedge funds have recently made changes to their positions in the business. Smartleaf Asset Management LLC raised its holdings in shares of Gildan Activewear by 161.8% in the 2nd quarter. Smartleaf Asset Management LLC now owns 555 shares of the textile maker’s stock worth $27,000 after acquiring an additional 343 shares during the last quarter. Brown Brothers Harriman & Co. raised its holdings in shares of Gildan Activewear by 867.9% in the 3rd quarter. Brown Brothers Harriman & Co. now owns 513 shares of the textile maker’s stock worth $30,000 after acquiring an additional 460 shares during the last quarter. CIBC Private Wealth Group LLC raised its holdings in shares of Gildan Activewear by 169.0% in the 3rd quarter. CIBC Private Wealth Group LLC now owns 538 shares of the textile maker’s stock worth $31,000 after acquiring an additional 338 shares during the last quarter. Advisory Services Network LLC acquired a new stake in shares of Gildan Activewear in the 3rd quarter worth about $36,000. Finally, Measured Wealth Private Client Group LLC acquired a new stake in shares of Gildan Activewear in the 3rd quarter worth about $44,000. Institutional investors and hedge funds own 82.83% of the company’s stock.

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on GIL shares. Royal Bank Of Canada dropped their price objective on shares of Gildan Activewear from $79.00 to $78.00 and set an “outperform” rating on the stock in a report on Monday, March 2nd. Canadian Imperial Bank of Commerce reiterated an “outperform” rating and set a $77.00 price objective on shares of Gildan Activewear in a report on Friday. Zacks Research lowered shares of Gildan Activewear from a “hold” rating to a “strong sell” rating in a report on Monday, February 23rd. BMO Capital Markets upped their price objective on shares of Gildan Activewear from $70.00 to $78.00 and gave the company an “outperform” rating in a report on Monday, January 26th. Finally, TD Securities reiterated a “buy” rating and set a $77.00 price objective on shares of Gildan Activewear in a report on Tuesday, January 27th. Thirteen equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $79.92.

Gildan Activewear News Roundup

Here are the key news stories impacting Gildan Activewear this week:

• Positive Sentiment: Q1 results beat expectations — adjusted EPS of $0.43 vs. $0.36 est. and record first‑quarter revenue up ~63.8% year‑over‑year as HanesBrands was fully consolidated; company reiterated full‑year guidance and synergy targets, which supports medium‑term earnings power. Gildan Reports Record First Quarter Revenue and Maintains its Full Year 2026 Guidance
• Positive Sentiment: Company maintained FY‑2026 EPS guidance (4.20–4.40) and revenue range (~$6.0–$6.2B) and reiterated expected synergy run‑rate (~$250M over three years), giving investors a clearer earnings trajectory post‑acquisition. Q1 release and call materials
• Positive Sentiment: Declared a quarterly cash dividend of $0.249/share (ex‑dividend May 20, payable June 15), which supports yield‑seeking demand and signals cash‑flow confidence.
• Neutral Sentiment: Shareholders re‑elected all nine management nominees, approved auditor reappointment, renewed the Shareholder Rights Plan and passed the non‑binding Say‑on‑Pay — governance items passed but litigation risk remains. Gildan Activewear Reports on Shareholders’ Voting Results
• Negative Sentiment: Regulatory / litigation overhang: law firms launched a class action alert and a fraud investigation (Levi & Korsinsky) tied to past CEO removal/reinstatement and alleged governance failures — these actions create downside risk, potential legal fees and reputational damage. GIL Shareholder Alert: Gildan Activewear Inc. Class Action Lawsuit – Investors Should Contact Levi & Korsinsky Levi & Korsinsky Launches Fraud Investigation
• Negative Sentiment: GAAP results showed a loss for the quarter (GAAP diluted loss per share $0.30) and adjusted metrics reflect integration and inventory moves; near‑term margins were pressured (operating margin (0.1)% GAAP), which could weigh on sentiment until synergies are realized. Q1 press release: GAAP loss and adjusted metrics

About Gildan Activewear

Gildan Activewear Inc (NYSE:GIL) is a vertically integrated manufacturer and wholesaler of branded basic apparel, including activewear, socks, hosiery and underwear. Headquartered in Montreal, Quebec, the company produces a wide range of products such as T-shirts, fleece garments, sport shirts, performance wear, and shapewear under its Gildan, Anvil, Comfort Colors, Gold Toe, Peds and Silks brands. Leveraging its in-house knitting, dyeing, cut-and-sew and finishing operations, Gildan supplies blank apparel to screen printers, promotional product distributors and major retailers around the world.

Since its founding in 1984 by Glenn J.